Skip to main content
6:00 pm
final trade time. mike? >> still like boeing on the long side. >> tim? >> tim's going to talk about emerging next. eem is a sale here. >> guy? >> snap-on tools, a little frothy, but i think it continues higher. >> grasso? >> hewlett-packard. wouldn't buy it this week, though. wait until middle of next week and looking for low 14s, maybe 14.25. >> beeksies? >> one of the better stock markets out there has been germany. tim knows this very well. that continues if you like global stocks, you buy. >> i'm melissa lee. thank you for watching. back here again at 5:00 for mor. in the meantime, "mad money" with jim cramer starts right now. i'm jim cramer and welcome to my world. >> you need to get in the game.
6:01 pm
>> funds are go going to go out of business, they're nuts. they know nothing! >> i always like to say there's a bull market somewhere. >> hey, i'm cramer. welcome to "mad money," welcome to cramerica. my job is not just to entertain, but to teach and to coach you. so call me at 1-800-743-cnbc. may 2013 be as good as 2012 for you in the stock market. that's what i found myself thinking all day, in spite of today's incredible action, best day in over a year of the. the dow soaring 108 points. the nasdaq rockets 3.07%, i feel like i'm surrounded by people who are already fretting about the next big bad thing. this time it's the debt ceiling fight. they're worried eem as it seems
6:02 pm
the market has a tremendous case of seller's remorse. they're scared. even as it seems those who fled the market year end are in their buying and buying the same stocks we sold. when we looked certain to plunge into the fiscal abyss. how else do you explain how we got the best first day of the year for the s&p since 2009? let's take a moment to smell the 2012 roses. no one else did. because they seemed to smell pretty good to me and it's easy to go right past them without an ounce of thought. not tonight, not for me. i'm not advocating wearing these, i'm not wearing advocating rose-colored glasses. i'm saying there are some genuine roses out there totally visible to the naked eye. that i heard very few people celebrate today. that ends here. look, let's talk "mad money" manifesto for a moment. my job, what is it? it's pretty simple, right? it's to try to help you make
6:03 pm
money. i may not always be right, i'm first to admit it, okay? but i know there's an opportunistic optimistic way to make money while embracing skepticism and cold-hearted reald and there's an unrealistic way to not make money is to be continually cynical, offering a crowsish mindset dedicated to the proposition that there no rose gardens to begin with, just thorns. thorns that are endlessly in your way. so why even venture into the thick of it. maybe it's because of my spare time i like to garden more than any other hobby. but a rose of an s&p that's up 16% like it was in 2012, a rose that keeps capital gains and dividends taxes lower than i would have expected even two weeks ago, a rose that allows the middle class to stay permanently ensconced in lower tax rates, these roses must be celebrated even if it is for some small hour on some cable show. i start this year somewhat dazzled by events. a week ago i was worried that
6:04 pm
tax waits would go up for everyone. you could barely be compensated for owning higher-yield stocks and we'd have to put a meat axe to government spending, going over the cliff worried me, gave me pause about 2013, as i trust it did for you. even yesterday when i heard that eric cantor was going to try to scuttle a hard-fought deal that was overwhelmingly approved in the senate, it gave me again pause about what could happen this morning. i was prepared for a down 300, 400. but cantor, who momentarily was a sure candidate for the wall of shame if he kept up that stuff, he ultimately backed down and we got a deal that everyone dislikes, which is the essence of what it means to rise above politics. you're supposed to dislike it, for heaven's sakes, it's a compromise. right now about the pending battle over the debt ceiling other than the fact that the buyers weren't too scared of the upcoming big bad debt fight today. what makes me not so concerned?
6:05 pm
i know there are plenty of other people who will wouldorry about the debt ceiling. i don't have to do it. let them worry about it i worry about the things very few people are worried about. i acknowledge i'm fretting over, problems that are thought about in advance by everybody, they have a tendency to be resolved. remember the european nightmare, listen, kick the can, 29% in germany, 20% increase in france. let's play that game. second i was far more concerned about where individual tax rates would end up than i am over the coming battle over spending. wi want to see social security paydays backed up and i want to see people pay more for medicare. i want to see creative way to raise money. maybe we need a national sales tax. i don't know. but all of these right now are secondary to the big cliff we just avoided. i suspect that president might have invoked the 14th amendment to ignore the federal debt
6:06 pm
ceiling and argue that the debts must be paid. even though i want to see spending reined in badly, that's important to me. what's happened every time we've been blindsided by washington? we miss what's going on around the globe, a first-class recovery and remarkable. something my charitable trust which beat the 2012 estimates, been vesting in. no, invest that way later in the show. you know we miss the wave of mergers and acquisitions that i now think happened, since we avoided a cliff dive. don't you wish you owned the rental car companies today, pricing just got better now that avis bought zip car for $500 million. we missed the bank stock rally. citigroup, bank of america charging ever higher even as they're so far behind the market, they could go up hoojly from here without stretching their valuations. >> we missed the continued improvement in housing and
6:07 pm
housing stocks. something that won't be derailed by a debt ceiling debate. and we'll stay stoked by low interest rates and affordability. helped by gigantic rebuilding in the northeast. we missed the deep recovery rally in tech. numbers may be too low and at last, the promise of facebook could be realized thanks to the new-found embrace of mobile opportunities, better than anyone else can. when we're blinded by washington we fail to capitalize on what might be an increasing small businesses now that the cliff cloud has cleared. i keep thinking about the words of marty musy, paychecks. we just got some certainty and people start new companies again at a pace that used to be rather natural. about r but we have the level of certainty, i think mucey will be right. i think that there was a small minority that held our nation hostage in the end, only 167
6:08 pm
members in the house rebelled against the compromise. couldn't the same thing happen again with the debt ceiling? would that be so strange? now hey while you're waiting do you sell those dividend stocks again, dump the mass limited stocks. how did the dow work for you? is that the take-away from the rose garden that sprung from the thorns of the debate. throughout my 33 years, yes in the stock market. i've always taken heed of the skeptics but i have blocked out the cynics and most effectively. because the dow jones industrial average was 12,000 points lower than it was when i got started. it seems like the right call whext i think we're going it take a gigantic hit, i'm willing to shout it from the roof tops, like i did in 2008. i want to bring them back in at lower level when is the fire was put out, i'm proud of that. but there's no fire in sight now. just a smokescreen from washington. that will again keep people from realizing that the terrific
6:09 pm
gains this year could produce, like the fabulous gains we got last year. bottom line, i can't play the gloom game. i'll let others play it. i'm too busy trying to find the next super stocks that are out there. the next undervalued break-up plays, the next takeover opportunities, opportunities to present themselves only those not blinded to invoke that great ballad by the smoke from a distant washington fire. let's go to jack. >> caller: i'm i read your book, i'm following a sector rotation strategy, i'm in materials and i watched the fiscal cliff being resolved and i'm thinking what'sed future on this as far as i like housing, i think it's good a place to stay for a while. what do you think? >> i agree with you. now because of my discipline, i don't come in up 2.5, 3%, i wait for a pull-back, i'm willing to
6:10 pm
accept as i have, many times, including 1998 and in 1989, an acceptance that i might be missing a big move because i got to wait for a pull-back, i think it's fine. it's still a sweet spot, nothing has changed, including the idea that the debt ceiling can derail it. it just got better because we have a deal. jackie? >> caller: jim wishing you a happy prosperous 12013. did you see the casino revenue numbers were up 13.5% in 2012 and up 19.6 in december. now with the strengthening of the chinese economy, the rise of the chinese middle class, and the approaching chinese new year's which what's to follow on your birthday, february 10th, i believe that whether it's an mgm, which i love, alvs or a wynn resorts, i think they got great momentum going forward and i think they should be bought right now. what do you think?
6:11 pm
>> i'm in tote agreement, i think that that group is terrific. i like mgm on a spec basis, butdy that back in 2012. and wynn? best in show. new year, new attitude. i'm letting everybody else play the gloom game. excuse me, i'm looking for the next big thing. there might be a smokescreen from washington, i can help you see through it and i don't need rose-colored glasses to do so. coming up, fireworks? the markets fired like confetti cannons, starting off 2013 on hand some game on the back of a fiscal cliff deal. but can it continue? cramer takes on the technicals to find out when he goes, "off the charts." and later, ready to ride? cramer is putting the pedal to the metal to find out which stock could be the best performing name of 2013. get ready to load up the truck, just ahead.
6:12 pm
plus, passport to profit? the fiscal cliff may be crumbling, but concerns over slow growth in the u.s. aren't going anywhere. looking for a place to turn? grab your luggage and hop aboard. cramer is taking a trip it to find the international markets that could be traveling higher. all coming up on "mad money."
6:13 pm
6:14 pm
6:15 pm
now that the big chunk of the fiscal cliff has been bridged at the last possible moment, we need to ask an important question, can the rally continue throughout 2013? i don't know how to answer. but tonight we're doing a special wednesday edition of tuesday's off-the-charts segment
6:16 pm
with the assistance of bob lange, to find out what he thinks is going to happen. now i asked lange what he likes for the new year, what is he thinking here, big picture. he said while the dow and the s&p 500 both looked set to reach new all-time highs, sometime this year, you heard me right. he reverses a different pair offaof a averages, he believes these are both positioned out to outperform in 2013 like they did last year. here's why, take a look at the long-term monthly chart of the little drawing here, power shares qqq, the etf that reflects the nasdaq 100. even with the recent weakness in apple, which is a major component of the index, the qqq managed to close out above its 200-day moving average. we know that's been a positive sum. we talk about it a lot on the show. the index is now within 50 points of its all-time high. that was back from the dot-com
6:17 pm
bubble when it was at 115. lange believes those highs could be in its sights. i didn't think we would see that again. he believes because right now the qqq is trading at $67.20. if it can wraek out above $70, then he says there's to resistance between there and 95. if the nasdaq 100 can rally 3.5 points over 70, lange thinks it could be smooth sailing to much higher prices. he sees the index ultimately making a new all-time high, over 115 bucks by late 2014 or early 2015. which would be a pretty fabulous move to retrace that our lifetime, he's got it in a couple of years. weekly charter of the qqq, he thinks there's a bullish set-up. over the last several months, the nasdaq 100 has been consolidating after its big move higher at 2012. now consolidation, trading sideways he says that's building a base. and it can use as a launching
6:18 pm
pad for the next big raly. more important, take a look at the indicator at the bottom of the chart. that's the moving average convergence, divergence, the line i talk about. everyone calls it the mac-d. we talked about it before. it's a momentum indicator that charters use to detect shifts in the stock's trajectory, not as-day, or after, but before they happen. right now lng thinks the mac-d line is signaling a big break-out for the qqq. it took off soon after. it goes there, crosses then look at that what great predictor. we saw in september 2010. same thing in december of 2011. it means the nasdaq 100 could be about to make a much bigger move higher even on top of what happened today. >> russell 2,000, take a gander at the daily charts of the i-shares russell 2,000 index etf. more jargon, i'm sorry for that
6:19 pm
i've got to try to get these things into your head, this is the russell 2000, today it took it out. there's a pattern in the chart to make lange think the index could making all-time new highs from here. the russell 2000 make a cup and handle formation. charter jargon, that's where you have a deep bottoming pattern that looks like a cup and after a rebound, you get a cup's handle. it is so reliable. lange is not searching for pictures inside of the chart. he likes the company pattern because it is one of the most reliably bullish pattern. it's just a percentage it's more reliable than not. when security breaks out from handle you get a big move higher. that's what the russell 2000 is doing right now, it's busting out of the downward handle formation. shooting higher.
6:20 pm
lange thinks this move is in its infancy. of course there's more from that. take a look at the volume bars, you can see that the russell 2000 has had strong volume on the updates since mid november and much lower on the down days this is a classic case, down much lower volume and flips, classic sign the big institutions in in there buying and the moving average convergence/divergence line is still in positive territory. i mean look, volume down, mack-d going higher. wow. this is staggering stuff. russell 2000 is a huge buy, it's a great-looking chart. the monthly chart, now we're going to look at the seasonal pattern that lange says is worth examining. lange says small caps tend to come on strong at the beginning of the year. recovery thing because of tax loss selling. but that's too simple. you can see that in six of the last seven years, the january effect that i don't know, you caught a terrific rally in the
6:21 pm
russell 2000 if you owned it in the first three months of the year. the only exception in 2008. but that was an exceptional year all around. if the pattern holds up. the index could be about to make a big move higher. giving that the daily chart is saying the same thing, lange thinks the russell 2000 chart could be the best thing around for the next three months. i'm not going to trade 2013 but i like ha the set-up is here. here's the bottom line. if you believe the charts as interpreted by lang, then 2013 could be a good year. now that we put the fiscal cliff behind us, he sees the dow and the s&p hitting all-time highs he thinks the nasdaq 200 and the russell 2000. are big for the upside. after the break, i'll try to make some more money. coming up, ready to ride? cramer is putting the pedal to the metal to find which stock
6:22 pm
could just be the best performing name of 2013. get ready to load up the truck, just ahead. i've always had to keep my eye on her... but, i didn't always watch out for myself. with so much noise about health care... i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile. not random statistics. they even reward me for addressing my health risks. so i'm doing fine... but she's still going to give me a heart attack. we're more than 78,000 people looking out for more than 70 million americans.
6:23 pm
that's health in numbers. unitedhealthcare.
6:24 pm
at a dry cleaner, we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. yooney needs an ally. . sometimes the best stock picks are ripped from the headlines, just like an episode of "law and order." a couple of weeks ago, there was a piece in the "washington post" saying that auto sales saved the
6:25 pm
economy in 2012. the highest number of new vehicles sold since the financial crisis. in today's "wall street journal" we see another headline, u.s. auto sales forecast to break 15 million in 2013. when do they suggest the number of vehicles sold this year could be closer to 15.4 million. cn cnbc's own phil lebeau was saying it could be 15.5 million. tomorrow i think we're going to find out about december sales numbers and it's going to be terrific. hurricane sandy wrecked hundreds of thousands of cars that need to be replaced. bloomberg surveyed a bunch of analysts and they're predicting a 9.8 increase for december. put it together and the domestic auto market is clearly on fire. in fact, it's giving rise to maybe just maybe one of my best
6:26 pm
ideas for 2013. we still got a tremendous amount of pent-up demand in the country. the average car on the road is ancient, 11 years old. it's now easy to get a loan for a new car at a super low interest rate this is a story where the easy answer is the best answer. don't try to outsmart yourself. continual theme for 2013. we're on track to sell a huge number of cars in the country, buy ford. why ford? first of all, it's the best auto company in america it likely sold 2.2 million cars in the u.s. last year. it is the first auto company to get back to the prerecession levels. the ford focus was the best-selling car on earth last year when you include the fiesta and the f-series pickup. ford makes three of the top ten best-selling cars worldwide. nobody else has that many. ford's u.s. business, fantastic shape. ford's operating profits in north america are at the highest
6:27 pm
level since 2000 in the latest quarter, that is huge. plus we know that housing prices are on the rebound. when that happens, consumers feel wealthier and more likely to spend on a new car buy buy buy. with the fiscal cliff a thing of the past we don't need to worry about incox taxes going up for 98% of americans, something that might have trimmed car sales. two-thirds of the domestic sales come from light trucks. but the company is shifting focus to smaller cars in order to capitalize on demand for more fuel-efficient vehicles. not like gasoline went down big. hey, don't get me started about the f-series, i love them. bought a used one in 2011. an f-350, it's dynamite, it handles like a dream. don't get in front of me when i'm driving. ford has been doing great domestically for a while. i've become reluctant to recommend the stock because of ford's european exposure. as the losses in europe were so
6:28 pm
horrible, they virtually canceled out the terrific gains, ought that hard work in america, just destroyed by the sales in europe. the losses just horrendous. but then two months ago, ford u.s. reported spectacular quarter and the company indicated it's aggressively cutting back on european business. the company has announced plans to cut 6200 jobs in europe. we don't want anyone to loss their job, but the company has get more profitable. moves that should generate a half a million dollars in annual savings by 2015. if these cut-backs aren't enough, ford said they're willing to go further in order to become profitable in europe by 2015. ford is more profitable than any other automaker when it comes to slash the costs in europe. gm has just discovered the worries in europe. then in china, ford did get into china late back in 2003, six years after gm. gm has done a fabulous job. they have 2.9 market share. the chinese business is growing.
6:29 pm
in november, ford's chinese sales rose bay whopping 35%. a year ago, they lost money and this company they made $45 million. by 2020, ford expects that asian and africa will account for 32% of sales. total sales. up from 15% in 2010. a huge growth region and ford is making up for lost time. ford's latin american business took a hit last year. though sill profitable. i think it could be on the verge of a comeback as latin american companies get serious about breathing new life into their economies, ford's raw costs have been a problem, but they're coming down and the company's deal with the united auto workers gives them a lead until 2013. ford does have the best ceo in the business, allen mulally. he ran boeing aerospace, but he was what the company needed him in 2006. a financial turn-around artist. mulally saved boeing and now has
6:30 pm
saved ford. thanks to mulally, ford was the only one of the big three that didn't need to file for bankruptcy protection. they didn't take a penny of government bailout money. i think he streamlined the company a little late, but has been improving the corporate culture and the balance sheet is so much better in 2006, ford borrowed 23.5 billion to save the company. they had to pledge a ton of assets as collateral, including their logo. here you go, take my logo, please. they had to do that assed enend of september, they had paid its loan down to $14 moiillion. terrific sign of how effective mulally has been in fixing the company. this is a classic better balance sheet story. the less debt ford has, the less interest the company has to pay and the higher its earnings. it is amazing to me when i worked at goldman sachs years ago, ford paper was aaa, it was like treasuries, i it can happen again.
6:31 pm
i can tell you mulally is not as young as he used to be, but neither am i. he's not going to quit until ford has completed it's worldwide turn. the ford chart, let's just say, when i was looking over the charts this weekend i know you thought i was on vacation, i was chartd-studying, let's say it's about the best in the book. bottom line, when you see all the stories about the booming u.s. auto business, don't outsmart yourself, stick with the proven winner. best idea that i have, john in ohio, john. >> caller: happy boo-yah new year to you and your "mad money" staff. >> i have the best staff in the world and they love me to saydy beat them all in fantasy football. i was going to work it in, best moment to work it in. what's up? >> caller: with car and truck sales expected to go up. could i have your opinion on american axle this year? >> you know i was too bullish on that. and i don't want to slight it now. but i think that the i think it
6:32 pm
can go up. i think it can go up. it's not my favorite and that's because i actually liked ford here. let's go to bob in new jersey. >> caller: hi, jim. this is bob grunder from the storm-ravaged town of matasquan, new jersey. >> the guy was like listen i'm worried about waste. i'm worried about people's homes, i'm not talking about second homes, i'm talking about first homes, i think congress could address it, i sure hope so, governor christie. come on the show, repeat what you said, you're the man, go ahead. >> i have a reasonable position in gardner denver at 35 and eaton at 50. knowing that gardner denver is takeover target and eaton at 56 seems a little rich, i would like to increase my position in one or the other which one would you recommend and at what price for a long-term hold? >> all right. gardner denver we do, we don't know, the it doesn't look like
6:33 pm
there's a deal, we don't speculate. the fundamentals just okay there. eaton, that's sandy cutler has done a remarkable job. but i'm not a buyer of stocks after an up 3% move, when they pull back it's going to be eaton is the one that i like. the best stock of 2013? it could be ford. don't outthink it. the business is starting to boom. and the winner will be the letter f. don't move. first lightning round of 2013 is coming urp. tonight, fiscal cliff, a done deal, but washington remains on edge and the political battles are far from over. larry looks at the next big fight affecting your money and your future.
6:34 pm
6:35 pm
6:36 pm
it is time, the lightning round. cramer's as we take you calls. my staff prepares the graphics, we play to the sound. and then the lightning round is over. that's on the fly. hey, before i start i want to dedicate this rally, this lightning round to everybody who stayed with the rally and listened to the show. because that was the right thing to do. are you ready? start with the lightning round. i'm going to go to dan in florida. dan? >> caller: happy new year, dr. cramer, how are you? >> not bad, i'm glad i got that.
6:37 pm
what's going on? >> caller: i own walgreen's stock, is it time to pull profits or room for growth in 2013? >> i think it's probably got room to go higher because the drug stores are doing magnificently here. matt in michigan? >> caller: yes. warren, michigan. i'm wondering if regeneron. >> i don't think it's done. it is one of the best performers. we had this company and the stock was at 5. their science is so much more superior to everybody else's when it comes to this macular degeneration, i think the stock -- buy buy buy, is going to 200. mike until nebraska? >> caller: happy new year, boo-yah, jim. >> same. >> caller: win -- >> no, i'm not convinced. i don't like these other companies that are, that started out as wireline companies to try to do more. it's not good enough. broadband, to me it's not
6:38 pm
working, you can stick with it but i don't like it. matt in new york? >> caller: boo-yah, thanks for taking my call, jim. >> what's going on? >> caller: i'm getting into stocks. i'm wondering what your opinion is on. >> which one? >> nike, nke? >> i think nike is terrific. i believe in the return in china, north america, doing terrifically. splits the stock, it's a $50 stock, i think it can go to $60. glen in virginia? >> caller: jim, i'm a long-time listener i want to thank you for helping me get back to even sometime ago. >> you're terrific for saying that, thank you so much. howky help? >> caller: i'm retired living on dividends, my favorite stock is triangle capital corporation. tcap. i would like to know what you feel it might do. >> well it's a finance company, and i got to tell you, what you want to be in, is a finance company in this economy.
6:39 pm
so i'm going to say i like it. do i know it close enough? no, i wish the ceo would come on. it would be a good story. let's go to blake in new mexico. blake? >> caller: hey jim, breaking bad boo-yah from the land of enchantment. >> walter white, jesse boo-yah, back at you what's going on? >> caller: my stock in moly corp, they offered their ceo, but with today's gain of 10%, china clamping down and talks of a possible takeover, is now the time to get in? >> you know what? i wouldn't even wish that on gus fring, i don't want you near that stock. sell, sell, sell. not your money. let's go to james in illinois, james? >> caller: boo-yah, mr. claimer, happy new year. >> same. >> caller: my stock is dick's sporting goods, what do you think of it, 28% up the last year? >> i think it's national, lot a room for it's well-run company. i'm going to mispronounce this, my apology.
6:40 pm
i'm going to vahideh in arizona. >> caller: hi, james, i love your show, thank you for taking my call. i was wondering what you think about google's any which is coming on or about january 17 or 18? >> i like google, a little bit in the penalty box versus facebook which i think has done miraculously. the last google quarter was not good to tell you i like it is just reacting to the action. i don't like to do that, i think facebook has more upside. wow and that, ladies and gentlemen is the conclusion of the -- lightning round. >> the lightning round is sponsored by td ameritrade. coming up, passport to profit? the fiscal cliff may be crumbling, but concerns over slow growth in the u.s. aren't going anywhere. looking for a place to turn? grab your luggage and hop aboard. cramer is taking a trip to find the international markets that could be traveling higher.
6:41 pm
6:42 pm
6:43 pm
at the beginning of last
6:44 pm
year, everyone said you had to hide in the good old u.s. of a, because the rest of the world was falling apart. now as 2013 kicks off with another contentious battle in washington, the time over the debt ceiling. one that could be every bit as bad as the travesty we just went through. two years ago. rivaling the fiscal cliff battle. new advice about where to invest your money. at least if you're as negative about the u.s. as everything else i talked to. there's major parts of the kple that are going strong. today's rally was a magnificent demonstration of that. as we saw with the fiscal cliff nonsense, washington is glo gridlocked, it seems like none of the washington officials care about getting the economy strong. they would much rather fight to the death over the deficit. the measure last night passed, but it almost didn't happen,
6:45 pm
because the house is an institution where the minority is able to hold the majority hostage. i think 2013 is a year where as strong as the market was today, i need to you diversify some of your portfolio into international markets, if you haven't yet. especially since many of these foreign countries have either been easing or implementing stimulus measures for over a year. while the democrats and republicans only ever seem to want to fight with each other -- the rest of the world has been getting its act together. they make us look like pathetic amateurs at best, if not partisan, let's say akin to the civil war period. so which regions have turned around? which regions have got tn together and what's the best way to play them? first, here's one i haven't mentioned, 20 years? japan. after years of government gridlock where the country stumbled from one recession to the next and a dying economy caused a flat-line economy, the one that we always laugh about,
6:46 pm
japan had an election two weeks ago, one of the biggest landslides in history. a 20-month low over the election. giving japanese exporters a major edge. as the new prime minister campaigned on a platform of boosting the economy via easing monetary policy and major government sending. japan has been struggling with deflation for over a decade. nut government has adopted the malcolm x position and will beat deflation by any means necessary. google that if you want to see some amazing video of malcolm x. given these policies, the yen is going to keep getting weaker, terrific for japan's export-oriented economy. best way to play it? >> i like the i-shares, msci japan index fund, the ewj, the edward walter jim. a diversified index that owns about 100 of the biggest companies that trade in japan. what other things are not doing
6:47 pm
better? europe. granted the european economy is still depressed. we've seen a number of data points that suggest things are stabilizing, purchasing managers index numbers for manufacturing and nonmanufacturing that have stabilized and inching high anywhere several countries led by germany. and positive retail sales, and german business came at the highest level in two and a half years. greece's debt was upgraded. greece of all places. billi big monetary changes policy changes in europe. as over the last several months, the money supply in europe has doubled versus last year. plus, last month the eu agreed to a common european banking regulator which was a very big deal. there was overshadowed by our - u.s. if a turn is coming, at least a
6:48 pm
bottom, you need to get in before that happens. think the bottom is for rear, i think the 2012 bottom stands, if you wait until everybody thinks it's obvious you'll be out, you'll be too late. remember, the european markets kept rallying last year despite all the worries about the continent's weakness, german market, french market up 20%. uk market up 13.5%. how do you play europe? i prefer the van guard msci euro etf, symbol vgk. that's victor george ken for all of you home gamers. i like it so much i own it for my charitable trust. you can follow it. a lot of reasoning why stephanie link and i co-director believe in this. it pays you a solid 3.7% yield while you're waiting. next up, yeah, there's -- china. not done. chinese economy has been in the process of bottoming for a while now. i think the genuine turn could be at hand. we know the chinese central bank has been providing capital injections to banks. last year they cut the reserve
6:49 pm
requirement three times, interest rates twice. i expect pair policy to remain easy. capital injections turned the tide. hit record levels in september/october. something that's helped the chinese economy dramatically as we see from improving macrodata points. purchasing managers numbers, industrial production, retail sales, housing numbers, you name it china has beaten inflation, they have the flexibility to do more juice to the economy if they need to the chinese party just got a new leadership in november. these guys are anxious to make a good impression by getting the economy up to speed. they did get it wrong. they were too tight. they've seen the error of their ways and they are now loose. when it comes to china, i like the i-shares, ftse china 25, ftse 25. frank x-ray indiana which owns a basket of 25 of the highest quality chinese companies out
6:50 pm
there. i know charitable trust holdings don't want to pick individual stocks too hard. the indian central bank cut rates by .5% in april. they have a ton of room to go lower and a big upcoming monetary policy meeting on january 29th. where goldman sachs is expected to cut rates by another .5 point. t indian country is all about growth. go for the india nifty fifty. the indy and last but not least. i like wa i'm seeing in latin america. the hard core anti-capitalist chavez regime seems to be on its last legs. even mexico is a good place to invest. cartel violence seems to be dying down. a deal between the president and the cartels. if you believe in a mexican resurgence, go with the i-shares msci, mexican investable market
6:51 pm
invest. eww, mexican ratio, 12-1 ratio to the dollar. 11-1, let's talk about brazil. my favorite brazilian etf is the ewz. i am more sang win on american's prospects than most. ky see you need to get some international diversification. given the political gridlock that strangling our economy. japan, europe, china, india, latin america, i think they could all be better places to invest for the next year than the united states, if washington doesn't get its act together. and i fear that alas -- they just might not be able to do so. "mad money" back after the break.
6:52 pm
6:53 pm
6:54 pm
you know what didn't work in 2012? risk on risk off. as hard as i tried to stamp out this ridiculous bit of hedge fund-ese, i wasn't able to eradicate it. it's like a roach. there's so many commentators out there and so many traders who want to succomb to this kind of nonrigorous lazy, needlessly binary way of thinking that it's impossible to shut them all down. let 2012 be a lessen to you. the risk on risk off crowd would have caused you to underperform if you followed them.
6:55 pm
notice i say you would have underperformed, not that they underperform. one thing is certain, none of these blowhazard is ever going to let you see the returns after what i bet was a fiasco year what i can only call an alleged strategy of the not even a fault strategy. not even a strategy. why did risk on risk off lead you astray? the s&p 500 gained 13.5 last year. but 16% of you included reinvested dividends, we know for sure those who played the on/off switch game, the binary nan sense didn't get to reinvest the dividends whichy hugely important to the component of this this year's performance. some of these trading tailgunners may not have gotten anything to show for their difference. even as companies continued to raise higher and higher payouts, second the shorthand risk/no risk let you down entirely. let's take europe. what was risky?
6:56 pm
the bonds, stocks? bonds miraculous former stocks incredible, too. i guess if you flitted from risk on to risk off and back again, you sold low and bought high. pretty regularly. maybe daily. because the riskiest moments theoretically what were you supposed to avoid if you were playing risk off were the times when the biggest amounts of money were made. the nonstrategy might have been called buy high sell low. maybe if you do it enough times, it works? i don't think so. >> risk on risk off is a portfolio sector management tool that back-fired. the riskiest stocks proved to be the least risky. second, bonds as a risk off strategy seems like an oxymoron. bond funds began to tyke it on the chin. thanks to the fiscal cliff the spending slowdown, so what is the conclusion of all this nan sense? simple, i ran money for 30 years, i invested other people's money for 30 years and doing a charitable trust before the risk
6:57 pm
on risk off garbage came into play. i'm beginning to believe that it's simply the refuge of scoundrel who is refused to do individual stock homework or can't think of anything to ask or to say. let 2013 be the year that the people who continue with the terminology be defrocked. not that they were frocked to begin with. i'll do my best it out them as short-term mental hooligans, maybe this time with the risky s&p's sterling performance it will become clear that this nan sense is nothing but a travesty perpetrated by those offering soundbites. stick with cramer. keep up with cramer all day, follow @jimcramer at twitter.
6:58 pm
6:59 pm

tv
Mad Money
CNBC January 2, 2013 6:00pm-7:00pm EST

News/Business. (2013) New.

TOPIC FREQUENCY Europe 12, Washington 11, U.s. 10, Lange 9, Cramer 9, China 8, Ford 6, Jim 5, S&p 5, Boeing 3, Google 3, Germany 3, America 3, Goldman Sachs 2, Japan 2, Gardner Denver 2, Jim Cramer 2, Greece 2, Blake 2, India 2
Network CNBC
Duration 01:00:00
Scanned in San Francisco, CA, USA
Source Comcast Cable
Tuner Virtual Ch. 58 (CNBC)
Video Codec mpeg2video
Audio Cocec ac3
Pixel width 528
Pixel height 480


disc Borrow a DVD of this show
info Stream Only
Uploaded by
TV Archive
on 1/2/2013
Views
101